FTSE makes gains after four days of losses

The FTSE 100 Index broke a four-day losing streak today but a sharp fall on Wall Street took the gloss off gains.

Investors waded in early in the session after bargain hunters pushed the Dow Jones Industrial Average almost 7% higher yesterday.

But traders deemed the Dow’s bounce overdone and dire US retail figures gave another reason to sell. The mood hit London, with the Footsie closing 63.8 points ahead at 4233 after gains of 4% or more during the day.

Indices across Europe also rose higher today despite a recession in the Eurozone being confirmed for the first time by official figures.

In London some stocks such as insurers hit hardest in the recent sell-off clawed back lost ground. Prudential was up by an eye-catching 14% early in the day, but it eventually closed 20.5p ahead at 290p, almost 8%.

Norwich Union parent Aviva followed with a rise of 12p to 344.75p in some welcome relief from falls seen in recent weeks amid concerns over their capital strength.

Hedge fund Man Group – another victim of a major sell-off after a gloomy update last week – surged to the top of the risers board after a broker upgrade. Shares rose 16p to 224.5p.

The share prices of the oil majors meanwhile fluctuated with a volatile session for crude oil, which slipped back to 56 dollars a barrel after rising to 59 dollars today amid the earlier market gains.

News also emerged that oil cartel Opec was planning a meeting for November 29 to discuss further production cuts after oil prices touched a 21-month low.

BP added 17p to 488p, while Royal Dutch Shell cheered 60p to 1655p – a gain of almost 4%.

A rebound in metal prices also gave minor cheer to the mining sector, with Anglo American the sector’s leading performer. The firm’s shares rose 43p to 1291p, but gave back stronger gains seen earlier.

Xstrata also added 4.5p to 947.5p, but Indian miner Vedanta Resources fell 48p to 558p, making it the Footsie’s leading faller.

Elsewhere, shares in IT services firm Logica fell more than 10% despite the company outlining additional cost savings and the second increase in full-year revenue guidance in less than six months. Shares were 8p lower at 67.25p.

Also in the second tier, airline easyJet was in focus today as its founder Sir Stelios Haji-Ioannou increased his personal stake in the business to almost 27% in a row with the board over dividend payouts that could also see him oust the current chairman.

The news came amid reports that easyJet was also teaming up with Virgin Atlantic to bid for Gatwick Airport. Shares fell nearly 5% today, down 13.5p at 266p.

The biggest Footsie risers were Man Group up 16p at 224.5p, Prudential ahead 20.5p at 290p, Standard Chartered up 46.5p at 776.5p and Cairn Energy ahead 76p at 1513p.

The biggest fallers were Vedanta Resources off 48p at 558p, Icap down 17.25p at 238p, HBOS off 3.5p at 86.5p, and Marks & Spencer, off 8.75p at 220p.